A National Law Review analysis frames IRS Notice 2026-40 as 'closer to a reset than an extension' for existing Opportunity Zone investments, warning that timing and documentation now matter far more than in the program's early years. The December 31, 2026 deadline to recognize deferred gains still stands; if a sale triggers gain at the fund level, reinvesting into a new QOF within 180 days preserves the deferral but resets the 10-year clock — trading away the program's signature tax-free-appreciation benefit. Operating projects that acquire property after 2026 must finalize a written working-capital plan by year-end and meet specific thresholds; routine maintenance qualifies, but new phases or adjacent expansion generally will not. The takeaway for OZ 1.0 investors: finalize exit and reinvestment plans now.
Original reporting by Daniel Cho for Opportunity Zone Invest, an independent OZ 2.0 research site. Facts are drawn from the primary sources cited above per our editorial standards. Nothing here is tax, legal, or investment advice.
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